Financial Results for the 3rd Quarter Ended December 31, 2004 < U.S. GAAP-based >

Transcription

1 Financial Results for the 3rd Quarter Ended December 31, < U.S. GAAP-based > February 1, 5 NIDEC CORPORATION Consolidated Financial Results for the 3 rd Quarter Ended December 31, < U.S. GAAP-based > The consolidated financial results of the Company are reported according to the U.S. GAAP from the current business year (commencing April ) with the Company s all major affiliates included in the scope of consolidation.

2 Summery of Q3/FY Sales, Operating Income and OPM* hit new highs. *Since the adoption of the U.S.GAAP Sales of HDD motors up 1% Y/Y. A surge in demand for Sub-1.-inch models. Brisk sales of Other DC motors and Fan motors contributing to a 3% Y/Y revenue increase for overall Small Precision Motors Large sales-and-profit increase for Machinery and Electronic & Optical Components. Consolidation of high-performing subsidiaries contributed. This presentation materials and the answers to your questions contain forward-looking statements including expectations, judgement, plans, and strategies. The forward-looking statements are based on management s assumptions and belief in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to: fluctuation of currency exchange rates, overall supply and customer demand in the motor industry, product development and production capabilities, performance of affiliated companies, and other risks and uncertainties. Nidec undertakes no obligation to update forward-looking statements to reflect events or circumstances that occur after the date hereof. February 1, 5 Summery of Q3/FY The three months ended December 31, marked record increases in sales and operating income due to solid sales of our core products, Small Precision Motors led by HDD motors, and expanded scope of consolidation. Operating income ratio on a US GAAP quarterly basis also reached a record high of 11.3%.

3 Sales by Product (Q3/FY) Others Pivot assemblies, Auto parts Logistics, Services Etc. Musical products Electronic & Optical Components Camera shutters, Camera lends units, Encorders, Switches, Trimmer potentiometers Motor-driven actuator units, Optical pickup units, Processing, Precision plastic mold products Machinery Die bonders, Circuit board testers, High-speed pressing machines, Chip mounters, Measuring machines, Power transmission equipment, Factory automation system Card Readers, Industrial Robots Motors 6.5% 16.%.3% 6.3% 6.7% HDD Motors 53.% 6.1% 1.1% 6.% 1.% Small Precision Motors Mid-size Motors Other DC Motors Optical disk drives High-Capacity FDD Polygon scanners Other brushless DC motors Fan Motors Game machine consoles MPU cooling fans PC/communication devices Home appliances Automobiles Other Small Motors Vibration motors Brush motors Stepping motors Motors for automobiles, home electronic appliances and industrial equipment February 1, 5 3 Sales by Products (Q3/FY) Since the start of FY ending March 31, 5, the Other business segment has been divided into the Electronic & Optical Components and Others. At the term end, the motor business comprised of Small Precision Motors and Mid-size Motors accounted for approximately 53% of the Company s total sales. Sales of Machinery, Electronic & Optical Components and Others shared the reminder by 16%, 7% and %, respectively, reflecting the inclusion of Nidec Copal, Nidec Copal Electronics and Sankyo Seiki in the Company s consolidation scope.

4 Profit/Loss - year on year - (Yen in millions) Net sales Q3/FY3 6,1 Q3/FY 1, Change +99.5% FY Forecast, Operating income (Operating income ratio) 6,66 (1.3%) 1,1 (11.3%) %,5 (1.1%) EBIT 5,65 1, % 5, Net income 3,, % 3, EPS ( ) % 5 Foreign Exchange ( /$) Average: Term end: % -.7% 15. Impact of FX rate changes: (Y/Y) Net sales: -1.3 billion yen Operating income: -.3 billion yen FX loss:.5 billion yen February 1, 5 Profit/Loss - year on year- Net sales for the third quarter ended December 31, increased approximately 63.9 billion, or 99.5%, to 1. billion. Operating income increased 7. billion, or 117.9%, to 1.5 billion. Net income before tax increased by 6.5 billion to 1. billion. Minority interest also increased, and as a result, net income increased approximately 5.1 billion, or 17%, to.1 billion. Financial forecasts for the year ending March 31, 5 remain unchanged from the previous ones released as of October 9,.

5 Nine-months (Apr.-Dec.) Results and Full-year Forecasts Q Q3 1. Q 1.1 Q Actual Net sales Operating income EBIT Net income 5 FY. Forecast 3 1 Q Q3 1.5 Q 13.1 Q1 11. FY.5 Q Q3 1. Q 13. Q FY 5. Q Q3.1 Q 7.5 Q1.5 FY 3. Actual Forecast Actual Forecast Actual Forecast February 1, 5 5 Nine-months (Apr.- Dec.) Results and Full-year Forecasts For the nine months ended December 31,, both Net sales and Operating income increased to double the amount recorded during the same period of the previous year. Accumulated net sales increased by 9.9% to 36.6 billion. Operating income increased by 11.7% to 3.6 billion. Net income before tax increased by 16.% to 39.6 billion. Net income increased by 111% to.1 billion.

6 Consolidated Quarterly Sales Y/Y: +99.5% Q/Q: +3.3% Q1/FY3 Q Q3 Q Q1/FY Q Q3 February 1, 5 6 Consolidated Quarterly Sales Net sales that increased twice as much as the year-ago-level includes the impact of consolidation of the group companies: Nidec Copal Corporation, Nidec Copal Electronics Corporation and Sankyo Seiki Mfg. Co., Ltd., which totaled approximately 5.6 billion. Excluding such impact, the increase in net sales was approximately 9.3 billion, or 1.5%. Yen s appreciation against the dollar caused an exchange loss of approximately 1.3 billion, or 3%. Taking this into account, the increase in Net sales was approximately 1.6 billion, or 16.%. As compared to the preceding three months ended September 3,, net sales increased by approximately.1 billion, or 3.3%.

7 Consolidated Quarterly Operating Income & Operating Income Ratio Y/Y: % Q/Q: +1.% Operating income (left) Operating income ratio (right) % 1.3% 1.5% 1% 1 9.% 1% 1 9.% 9.% % 1.3% 1.5 6% % % % Q1/FY3 Q Q3 Q Q1/FY Q Q3 February 1, 5 7 Consolidated Quarterly Operating Income Operating income for the 3rd quarter increased by approximately 7. billion, or 117.9%, to 1.5 billion Y/Y. The impact of expanded scope of consolidation (as explained in Page 6) amounted to approximately 5.7 billion, which includes earnings of the subject companies. On the other hand, the impact from the yen s appreciation caused a decrease of about.3 billion. Excluding the stated factors, Operating income increased by. billion, or 36%. Operating income increased by approximately 1. billion in Small Precision Motors which incurred little impact of expanded consolidation scope and decreased approximately. billion in Mid-size Motors. Small Precision Motors contributed to an income increase for the 3rd quarter. Operating income ratio for the 3rd quarter reached 11.3%, marking a record quarterly high since the Company complied with the U.S. GAAP. As compared to the preceding three months ended September 3,, operating income increased by approximately 1. billion, or 1.%.

8 Consolidated Quarterly EBIT & Net Income Y/Y: % Y/Y: % Q/Q: -1.% Q/Q: +7.% EBIT (left) Net income (right) Q1/FY3 Q Q3 Q Q1/FY Q Q3 February 1, 5 Consolidated Quarterly EBIT & Net Income Income before income tax increased approximately 6.5 billion to 1. billion Y/Y. A loss of 1.3 billion in Non-operating income affected Operating income increase of 7. billion. Foreign exchange loss (mainly revaluation loss) for the 3rd quarter amounted to 3.6 billion, largely exceeding the 1.1 billion for the same period of the previous year. Increases in income on sales of securities, however, offset approximately 1. billion. Despite the increase of 6.5 billion in income before tax, increases in Net income settled for 5.1 billion resulting from of a.7 billion increase in corporate income tax and a.7 billion difference between increases in minority interest and loss on equity method. As compared to the preceding three months ended September 3,, Net income before income tax decreased by approximately 1.7 billion, or 1.%, and Net income increased by approximately.6 billion, or 7.%.

9 Business Segment Results---1 < Small Precision Motors, Mid-size Motors > Small Precision Motors Mid-size Motors Net sales Other small motors (left) Fan motors (left) Other DC motors (left) HDD motors (left) Operating income (right) Net sales (left) Operating income (right) Q3/FY3 Q3/FY - Q3/FY3 Q3/FY -. February 1, 5 9 Business Segment Results ---1 < Small Precision Motors, Mid-size Motors > Net sales of Small Precision Motors increased approximately 15 billion, or 33.9%, to 59. billion Y/Y. Out of which approximately. billion came as a result of the expanded scope of consolidation. An expanded demand for Sub-1.- inch HDD motors and curbed production cost improved profitability of the Small Precision Motors business by.% over the immediately preceding three months ended September 3,. As compared to the same three months of the previous year, however, profitability of the Small Precision Motors business remained flat. Other DC motors and Fan motors in this category likewise increased profit. Net sales of the Mid-size Motors business increased approximately 13% to.5 billion. This increase was due to a sales increase in motors for home appliances and industrial use. Net sales of automobile-directed motors settled for a slight increase. Profitability decreased in all application fields, home appliances, industrial equipment and automobiles, as a result of investments for production capacity expansion in Pinghu, China. Cost increases in connection with automobile-directed motor development also contributed to the profit decrease.

10 Business Segment Results--- < Machinery, Electronic & Optical Components, Others > Machinery Electronic/Optical Components Others Net sales (left) Operating income (right) Q3/FY3. Q3/FY Net sales (left) Operating income (right) Q3/FY3 Q3/FY Net sales (left) Operating income (right).6. Q3/FY Q3/FY February 1, 5 1 Business Segment Results --- < Machinery, Electronic & Optical Components, Others > Net sales of the Machinery segment increased 1 billion Y/Y, to. billion. The increase consists of a combined sales from Nidec Copal and Sankyo Seiki Mfg., Co., Ltd., totaling approximately 1. billion. The remainder is comprised of an approximately 6% increases in sales from Nidec-Kyori, Nidec Tosok and Nidec-Shimpo. The Electronic and Optical Components business is a newly classified business area in place from the current period as a result of expanded scope of consolidation, which includes the products of Sankyo Seiki, Nidec Copal, Nidec Copal Electronics and Nidec Nemicon (Note: Products of Nidec Nemicon had been included in the Other segment until the previous fiscal year ended March 31,.). Net sales from this business for the 3rd quarter were 3 billion. Machinery and Electronic and Optical Components increased profit by 6.1 billion, approximately 5. billion of which came from the three companies that expanded the Company s scope of consolidation. An increase of several hundred million yen was earned from the sales of precision power press, semiconductor inspection devices and transmissions. Net sales of Other products increased by approximately.7 billion to 5.5 billion Y/Y. This was mainly due to the inclusion of Sankyo Seiki in the Company s scope of consolidation. Businesses including automobile parts, pivot assembly parts and other services also increased profits.

11 Quarterly Sales & Shipment < HDD Motors > Net sales (left) Shipment index (right) (1Q/FY3=1) Q1/FY3 Q Q3 Q Q1/FY Q Q3 February 1, 5 11 Quarterly Sales & Shipment < HDD Motors > Net sales of HDD motors increased by approximately 5. billion, or approximately 1%, Y/Y, on unit shipment increase of over %. Yen-based average sales price decreased by approximately 5%. On a U.S. dollar-based, however, the price decrease settled for ~3%. The relatively stable annual average price reflects an increased percentage of sub-1.-inch models in product mix..

12 Quarterly Sales & Shipment < Other DC Motors > 16 1 Net sales <newly consolidated> (left) Net sales <organic> (left) Shipment index <organic> (right) (1Q/FY3=1) 16 1 Q1/FY3 Q Q3 Q Q1/FY Q Q3 February 1, 5 1 Quarterly Sales & Shipment < Other DC Motors > Net sales of DC motors increased by 6. billion, or 7%, Y/Y due to the addition of sales of Sankyo Seiki resulting from expanded scope of consolidation. The Company s organic increase in sales and shipment were approximately 3%, and 16% %, respectively.

13 Quarterly Sales & Shipment < Fan Motors > Net sales (left) Shipment index (right) (1Q/FY3=1) Q1/FY3 Q Q3 Q Q1/FY Q Q3 February 1, 5 13 Quarterly Sales & Shipment < Fan Motors > Net sales of Fan motors largely increased by approximately.6 billion, or 3%, Y/Y. The impact of consolidation scope expansion was slight, and the Company s organic increases in sales and shipment were %, and %, respectively. This increase mainly derived from favorable sales of high-end products with higher unit sales prices.